What is meant by arbitration and what does it involve?

Posted by Nadia Winget on June 19th, 2024

Arbitration is a method of resolving disputes outside of courts together with the best lawyers in Sri Lanka, where parties agree to submit their conflicts to one or more arbitrators, who make a binding decision called an arbitration award. It is a form of alternative dispute resolution (ADR) that is typically faster and more flexible than traditional litigation. Arbitration proceedings are private, and the arbitrator's decision is usually final and enforceable in court.

Key aspects of arbitration include:

  • Voluntary Agreement: Parties must agree to arbitration either before or after a dispute arises. This agreement is often stipulated in contracts, known as arbitration clauses.
  • Impartial Decision-Making: The arbitrator, or panel of arbitrators, is chosen by the parties or through a mutually agreed-upon process. They act as judges to hear evidence, make findings of fact, and render a decision.
  • Binding Decision: Once the arbitrator issues an award, it is generally final and can be enforced by courts. There are limited grounds for appeal, primarily related to procedural issues or misconduct.
  • Confidentiality: Arbitration proceedings are usually confidential, protecting the privacy of both the dispute and the parties involved.
  • Flexibility: Parties have more control over the arbitration process compared to traditional litigation, including choosing the rules, location, and timing of hearings.

Arbitration is commonly used in commercial disputes, labour relations, international trade, and consumer agreements, among other areas where parties prefer a more streamlined and private method of resolving conflicts. For these types of cases, you would generally need the assistance of litigation lawyers in Sri Lanka or corporate law firms in Sri Lanka, who are experienced in arbitration.

Arbitration involves several key components and processes:

  • Agreement to Arbitrate: Parties agree to submit their dispute to arbitration. This agreement can be made before a dispute arises (through a contract with an arbitration clause) or after a dispute arises (through a separate arbitration agreement).
  • Selection of Arbitrator(s): Typically, each party selects an arbitrator, and those arbitrators then select a neutral third arbitrator (in a three-arbitrator panel). Alternatively, parties may agree on a single arbitrator.
  • Arbitration Proceedings: The arbitration process begins with a preliminary meeting to establish procedural rules and timelines. Each party presents their case, including evidence and witness testimony, in hearings similar to court proceedings but less formal.
  • Arbitration Award: After hearing all evidence and arguments, the arbitrator(s) render a decision known as an arbitration award. This decision is legally binding on the parties and can be enforced in court.
  • Enforcement: Once the arbitration award is issued, it can be enforced by filing it with a court. Courts generally uphold arbitration awards, except in limited circumstances (such as fraud or procedural misconduct).
  • Confidentiality: Arbitration proceedings are typically confidential, unlike court proceedings which are generally public. This confidentiality can be important for parties wishing to keep the details of their dispute private.
  • Costs and Efficiency: Arbitration is often chosen for its efficiency compared to traditional litigation. It can be faster and less costly, though this depends on the complexity of the case and the arbitration rules chosen by the parties.
  • Limited Grounds for Appeal: Arbitration awards are final and binding, with limited grounds for appeal. Generally, courts will only overturn an arbitration award in cases of fraud, bias, or serious procedural misconduct.

Skills needed by an arbitration lawyer

Any arbitration lawyer, from even the best law firms in Sri Lanka, requires a specific set of skills and qualifications to effectively represent clients in arbitration proceedings. Here are the key skills and qualifications needed by an arbitration lawyer:

  • Knowledge of Arbitration Law: A deep understanding of arbitration laws, rules, procedures, and best practices is essential. This includes familiarity with both domestic and international arbitration frameworks (e.g., UNCITRAL Model Law, ICC Rules, AAA/ICDR Rules).
  • Legal Expertise: Strong legal knowledge and expertise in relevant substantive areas of law that may arise in arbitration, such as contract law, commercial law, international law, construction law, or labour law.
  • Advocacy Skills: The ability to effectively advocate for clients' interests during arbitration hearings, including presenting arguments persuasively, cross-examining witnesses, and drafting persuasive written submissions.
  • Negotiation and Settlement Skills: Proficiency in negotiating favourable settlements and effectively representing clients in pre-arbitration settlement negotiations.
  • Case Management: Skills in managing complex arbitration cases, including organising evidence, managing discovery processes, and adhering to procedural deadlines.
  • Analytical and Problem-Solving Abilities: Strong analytical skills to assess legal issues, identify key facts, and develop strategic approaches to resolve disputes.
  • Drafting Skills: Proficiency in drafting arbitration clauses, arbitration agreements, arbitration submissions (e.g., statements of claim, defences), and post-award documents (e.g., motions to enforce awards).
  • Cross-Cultural Competence: Ability to navigate cultural and linguistic differences that may arise in international arbitrations involving parties from diverse backgrounds.
  • Ethical Standards: Adherence to high ethical standards and professional conduct, ensuring fairness, impartiality, and confidentiality throughout the arbitration process.
  • Client Management: Effective communication and interpersonal skills to manage client relationships, keep clients informed of case developments, and provide strategic advice.
  • Continued Professional Development: Commitment to ongoing learning and staying updated on developments in arbitration law and practice through seminars, workshops, and participation in professional organisations.
  • Experience and Track Record: Demonstrated experience in successfully handling arbitration cases, including both as counsel and arbitrator, if applicable, with a track record of achieving favourable outcomes for clients.

These skills and qualifications enable an arbitration lawyer to effectively navigate the complexities of arbitration proceedings and provide competent representation to clients seeking alternative dispute resolution.

How to find good litigation and arbitration lawyers

Finding good litigation and arbitration lawyers involves several steps to ensure you select someone with the right expertise and experience for your specific needs:

  1. Identify Your Needs: Determine whether you require a lawyer for litigation (court proceedings) or arbitration (alternative dispute resolution). Lawyers may specialise in one or both areas, so knowing your specific requirements is crucial.
  1. Research Potential Lawyers:
  • Referrals: Ask for recommendations from trusted sources such as friends, family, colleagues, or other lawyers you know.
  • Online Directories: Use online resources like legal directories (e.g., Martindale-Hubbell, Avvo) to find lawyers specialising in litigation and arbitration in your area.
  • Bar Association: Check your local bar association for lists of lawyers practising in these areas.
  1. Review Credentials and Experience:
  • Specialisation: Look for lawyers who specialise or have significant experience in litigation and arbitration related to your type of case (e.g., commercial disputes, employment issues, international arbitration).
  • Experience: Review their track record handling cases similar to yours, including their success rates and outcomes.
  1. Check Reviews and Testimonials:
  • Read online reviews and testimonials from previous clients to gauge client satisfaction and the lawyer's reputation.
  • Look for any disciplinary actions or complaints filed against the lawyer through your local bar association.
  1. Consultation and Interview:
  • Schedule consultations with several lawyers to discuss your case and assess their knowledge, approach, and communication style.
  • Ask about their strategy for handling your case, potential outcomes, and fees.
  1. Evaluate Communication and Compatibility:
  • Choose a lawyer who communicates clearly and effectively, and with whom you feel comfortable discussing your legal matters.
  • Consider their responsiveness to your inquiries and whether they make you feel confident in their abilities.
  1. Consider Costs and Fee Structure:
  • Inquire about the lawyer's fee structure upfront, including hourly rates, retainer fees, and any additional costs (e.g., court fees, expert witnesses).
  • Understand how fees will be billed and whether alternative fee arrangements (e.g., contingency fees, flat fees for certain services) are available.
  1. Trust Your Instincts: Ultimately, trust your instincts when selecting a lawyer. Choose someone who demonstrates integrity, professionalism, and a commitment to achieving the best possible outcome for your case.

These steps can effectively help you find a litigation or arbitration lawyer who meets your legal needs and ensures competent representation in resolving your dispute.

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Nadia Winget

About the Author

Nadia Winget
Joined: June 2nd, 2021
Articles Posted: 136

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